Sensex bounces 183 pts, logs 4th weekly gain as ECB plays ball
Mumbai : The BSE benchmark Sensex wrapped up the day on a positive note racing to over two-month high of 27,470.81 by rallying over 183 points — its fourth straight weekly gain — after ECB dropped hints that more stimulus are on the way.
By doing so, it managed to break its two-session losing run.
Investors were also comforted by a firming rupee, which rose to 64.82 against the dollar.
Indian markets took cues from a strong closing at Asian markets and a higher opening in Europe after ECB President Mario Draghi hinted that more rate cuts are being considered to reboot economy, which buoyed sentiment here, brokers said.
The 30-share gauge hit the day’s high of 27,555.06, but took a beating from profit-booking in select blue-chips as it finally closed up 183.15 points, or 0.67 per cent, at 27,470.81 — a level last seen on August 20.
The barometer had lost 77.26 points in the previous two sessions. Markets were shut yesterday on account of Dussehra.
The broader NSE Nifty rose to a high of 8,328.10 after regaining the 8,300-level, before settling at 8,295.45, a gain of 43.75 points, or 0.53 per cent.
On a weekly basis, both Sensex and Nifty climbed 256.21 points (0.94%) and 57.30 points (0.69%), respectively, to log their fourth straight weekly rise.
“Markets surged in line with its global partners which shot up on the back of stimulus hopes… A strong set of corporate earnings, strengthening of the rupee and Moody’s forecast of strong growth in India in 2015-16 boosted mood,” said Gaurav Jain, Director, Hem Securities.
ITC and Axis Bank rebounded the most, adding 2.81 per cent each. GAIL, NTPC, HDFC and ICICI Bank too advanced.
In the sectoral space, banking took the lead gaining 1.30 per cent, followed by FMCG, oil and gas and PSU.
The broader markets, however, trended down as investors locked in gains. The BSE small-cap and mid-cap fell 0.37 per cent and 0.26 per cent, respectively.
Foreign portfolio investors (FPIs) net sold shares worth Rs 48.33 crore on Wednesday, provisional data showed.
Major Asian indices in China, Hong Kong and Japan firmed up to 2.1 per cent. Europe remained in a better shape in early trade.